From Argos in Asda to spending your Nectar points – how the Sainsbury’s merger will affect shoppers
The supermarket merger could mean that you can use your Nectar points in both stores - but prices might not drop by as much as you think
THERE could be some big changes coming to your local Sainsbury's and Asda after the two supermarkets announced that they are going to merge.
While Sainsbury's says that some prices with drop by 10 per cent, and that no stores are at risk of closing, some experts aren't convinced.
Since the merger was confirmed on Monday, there has been speculation over fears of job losses, store closures and price rises.
But the supermarkets aren't giving very much away, which has got us thinking - what will happen to our Nectar points?
Will we be able to pick up Argos goods from Asda, like you can at some Sainsbury's stores?
And can they really drop prices without closing any stores?
We've spoken to the experts to find out what they think will be in it for us.
Will I be able to use my Nectar points in Asda?
Nectar is the loyalty scheme used at Sainsbury's to reward customers with tailored coupons and discounts depending on how many points they collect.
Asda doesn't have its own loyalty scheme so it would be welcome new if this becomes available in the green stores too.
Retail expert said that being able to use your Nectar points in Asda is a matter of when not if.
He said: "I am certain that rolling out Nectar points across Asda stores will be central to Sainsbury's plan for Asda after the merger."
Here's how to cut the cost of your grocery shop
SAVING on your shop can make a big difference to your wallet. Here are some tips from Hannah Maundrell, editor of Money.co.uk, about how you can cut the cost of your shopping bills:
- Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley
- Create a budget – Work out a weekly budget for your food shopping
- Never shop hungry – you are far more likely to buy more food if your tummy is rumbling
- Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering
- Use social media – follow your favourite retailers to find out about the latest deals
- Be disloyal – You may want to go to different stores to find the best bargains
- Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more
- Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
Will prices go down?
While Sainsbury's CEO Mike Coupe announced that a 10 per cent price drop on everyday products would be coming, Richard warns that this might not be guaranteed - and it depends on the rates of the suppliers.
Richard Hyman said: "That 10 per cent off was not discussed with suppliers before the deal was announced.
"Lot of suppliers are very sceptical, they are saying well where is the 10 per cent coming from? we don't have 10 per cent that we can cut.
"There is going to be a lot of push back from suppliers and it is going to be very difficult for Sainsbury's to keep that offer."
For customers to get really big discounts someone has got to pay the price, and that cost may shift onto the supermarket suppliers.
Will stores be closed or sold off?
Sainsbury's has already said that no stores will be closed as a result of the merger, but experts have warned that that decision might not be up to them.
Researcher Patrick O'Brien at Global Data, reckons there are around 75 stores that are so close together that the competitions watchdog the CMA won't be happy about.
He picked out the superstores stores that have the same first half of the postcode plus the first digit of the second half, which are so close together.
The watchdog is likely to decide that they both can't stay open as there won't be enough competition for customers in the area.
Using his theory, we found 13 locations where Asda and Sainsbury's superstores, including ones in York, Wigan and Birmingham.
Will there be Argos stores inside Asda supermarkets?
Sainsbury's took over Argos in 2016, and customers can spend their loyalty points in both stores. Some Argos stores are even inside Sainsbury's superstores.
Thomas Brereton from Global Data reckons that all of Asda's 600 stores have the potential house an Argos.
Asda don't have a convenience style store like a Sainbury's Local, so all stores are big enough.
There are already 191 Argos stores in Sainsbury's supermarkets, with 280 currently planned by the end of 2018.
More on money
Will Asda be more like Lidl and Aldi?
Over the past few years, Aldi and Lidl have been hot on the heels of the big four, as customers ditch the British brands for cheaper prices at the German supermarkets.
Richard said: "I don't think Asda is going to be able to match Aldi for prices, it's not built to deliver very low prices like those see in in Aldi and Lidl."
Unlike Asda, the budget supermarkets are able to set low prices because they tend to sell unbranded goods which allows them to get better deals and pass the savings onto customers.
An Asda spokesperson said: "It’s too early to start presuming fine details, but what’s clear is that the proposed merger will be a great deal for customers and will allow Asda to deliver even better value."
Sainsbury's did not want to comment.
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